Business activity in New York State fell sharply and unexpectedly in May, according to a report by the Federal Reserve Bank of New York on Monday.
A survey of the manufacturing sector conducted in New York state by the Federal Reserve Bank of New York showed that business activity was falling. The General Business Climate Index fell 36.2 points to minus 11.6 in May.
Economists expect the index to drop to 16.5 after being higher-than-expected 24.6 in April. Negative values indicate a decrease in business activity.
New orders were rejected and fell into negative territory. Shipments fell the fastest since the start of the pandemic, and it was also negative. Delivery times keep increasing and stocks are expanding.
Labor market indicators pointed to a modest increase in employment and the average work week.
Indices for both prices paid and received prices fell but remained high, suggesting that strong inflationary pressure remains despite lower orders.
According to the Federal Reserve Bank of New York, the forward part of the survey, which asks business managers about their expectations for conditions six months from now, is “low key.” Expected inventory, technology, and employment spending are all negative.
Source: Breitbart